Taking technological breakthroughs from lab to market

Since the 18th National Congress of the Communist Party of China in 2012, China's technological strength has grown significantly. In 2025, the country's total R&D expenditure reached around 3.93 trillion yuan ($584.8 billion), securing its position as the world's second-highest spender on R&D.

The R&D intensity reached 2.8 percent in 2025, and China's position on the World Intellectual Property Organization's Global Innovation Index has climbed to 10th, marking its entry into the league of innovative nations.

Breakthroughs have been achieved in various cutting-edge fields, with China not only keeping pace with global leaders but, in some areas, even surpassing them.

However, the key challenge in the next phase of China's development may not be whether it has the technology, but how quickly technology can be turned into productive capacity.

If scientific and technological innovation is the lifeblood of new quality productive forces, then the transformation of these achievements is the "converter" that transforms this potential into tangible results.

The conversion of scientific and technological breakthroughs is the critical link between technological advances and economic benefits.

It is a bridge that connects upstream scientific discoveries with downstream market demand, facilitating the integration of advanced technologies into industries.

This process drives industrial transformation and upgrading, thereby enhancing the quality of economic growth. History has shown that only by promoting the transformation and application of scientific achievements can the value of science and technology as the foremost productive force be fully realized.

As technological innovation plays an increasingly significant role in economic and societal development, the nation has prioritized the transformation of scientific achievements.

The central government has adopted an innovation-driven development strategy, positioning science and technology as the core drivers of national progress. A series of supportive policies have been introduced, forming a comprehensive policy framework.

These efforts have significantly facilitated the transfer and application of technological achievements, contributing to high-quality economic development. They have not only enhanced efficiency within industries but also spawned entirely new sectors and innovative productivity.

Nonetheless, challenges remain in China's efforts to transform scientific achievements into industrial applications. Official data shows that in 2025, the industrialization rate of invention patents was 54 percent for enterprises, 10.1 percent for universities and 17.2 percent for research institutes.

Due to various factors, a large proportion of scientific achievements has yet to cross the industrialization gap, leaving much room for improvement in supporting high-quality industrial development.

There are not enough high-quality scientific results that can be applied and transformed. Many researchers in universities and institutes have limited understanding of the actual needs of businesses, leading to research and development efforts that are not aligned with market demand.

Many technological achievements remain in the experimental phase, exhibiting innovation but lacking the maturity needed for commercialization and industrialization.

Consequently, while there is a seemingly large pool of accomplishments, few are suitable for direct adoption by businesses.

Besides, the willingness to adopt new scientific results also needs to be boosted among users. New technologies often lack market validation, causing downstream users to question their quality and reliability.

As a result, domestically produced first-generation equipment often goes unused. Consumers and businesses generally prefer equipment and technologies from established, well-known foreign companies. This limits the market penetration of domestic innovations, restricting the technological iteration and upgrading needed to achieve their full potential.

Also, platforms that support the transformation of scientific achievements do not have the required capabilities. Technology transfer platforms face challenges in linking scientific results with market needs, incentive mechanisms remain underdeveloped and there is inadequate training in intellectual property management and operations.

Platform services are often confined to general consulting activities and rarely extend to areas such as strategic planning, capacity development, intellectual property evaluation, market exploration and resource integration.

Financial constraints also hinder the transformation of scientific achievements. Every stage from testing to promotion requires substantial funding, yet investments fall short. This financing gap leaves many innovations without the support needed for development and application.

Additionally, banks tend to impose stringent requirements on risk assessments and credit quotas during the loan approval process for early-stage small and medium-sized enterprises.

The lack of patient, long-term capital further exacerbates funding challenges.

Fostering new forms of productivity and promoting the deep integration of scientific and industrial innovation are crucial goals during the 15th Five-Year Plan (2026-30) period.

To fully leverage scientific innovation as a driving force for economic development, efforts must be intensified to accelerate the transformation and application of technological achievements, thereby supporting industrial innovation.

It is necessary to enhance the supply of high-level outcomes from universities and research institutes, reform evaluation systems to emphasize demand-driven results and establish mechanisms that favor the generation of high-tech, high-value outcomes.

Efforts should be made to explore and expand channels for knowledge and technology transfer to enterprises, fostering collaborations through initiatives such as technology innovation centers, laboratories, new research institutions, and joint innovation alliances. Also, encourage universities, research institutes, and scientists to actively participate in businesses' technological innovation and product development.

It is equally important to establish technology transfer platforms jointly operated by the government, leading enterprises and research institutions.

Expand support structures such as concept validation centers, pilot testing platforms, technology incubators, and maker spaces. Leverage cutting-edge technologies such as artificial intelligence models and big data to deliver specialized services in emerging industries and future-oriented sectors, enhancing the application of these services.

There is a need to experiment with special guiding funds and patient capital, using methods such as mixed grant-investment funding and milestone-based financial support, to encourage the demonstration and application of first-generation technologies and systems, and develop collaborative innovation mechanisms that share both risks and benefits to accelerate the industrialization of breakthrough technologies and scientific achievements.

The author is the director of the Institute of Innovation and Development Policy, Chinese Academy of Sciences' Institutes of Science and Development.

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